Election budget for cost-of-living times

Cost-of-living pressures, population growth, ballooning infrastructure costs, and a state election due in October are the drivers of a big-spending 2024-25 Queensland budget, partly funded by increased royalties from the state’s mining industry. 

Queenslanders are being offered $3.7 billion in new cost-of-living relief on the back of a deeper deficit. 

The cost-of-living benefits include: 

• The already-announced one-off electricity rebate of $1,000 to all households
• A 12-month freeze on the indexation of government fees and charges, including for drivers – at a cost of $180 million
• The recently announced six-month trial of 50-cent public transport fares
• A 20% cut to car registration fees for 12 months 
• An increase to the stamp duty concession threshold (to $800,000) for first home buyers 
• The extension of children’s sport vouchers to $200.

The budget also extends the Helping Seniors Secure Their Home scheme to December 2024. Budgeted for $40 million over two years, the measure provides up to $10,000 for security measures to residents over 60 in the Townsville, Mount Isa, Cairns, Toowoomba, Tablelands, and Mareeba local government areas.

While not exclusively aimed at older people, the transport fare reduction and energy concessions are wins for the advocacy in National Seniors Australia's Queensland Budget Submission 2024-25.

Treasurer Cameron Dick is unapologetic about the now-forecast $2.6 billion deficit in 2024-25, which he says is to “help Queenslander households keep their budgets in balance”. 

“We’re not increasing taxes on Queenslanders – the way we are paying for $1,000 energy rebates, our 50-cent public transport fares and now our 20% rego reduction is by our progressive coal royalties,” he said. 

“It’s making sure that those big coal companies that are making record profits give a little bit back to Queensland.” 

Population growth, ageing, and increasing medical complexity in patient needs underpin health spending of $28.9 billion in 2024-25 – a growth of 10.6% (the historical growth average is 6.9%). Spending rises by $4.39 billion over the forward estimates to 2027-28. 

The budget aims to deliver 700 extra doctors and 2,600 nurses and midwives, while a hospital growth program aims to provide 2,200 extra beds by 2028 – a $1 billion funding boost in 2024-25. 

Queensland is experiencing a severe housing shortage including rising rents. The government has committed an additional $3.1 billion over five years for its Homes For Queenslanders housing plan. This includes $1.688 billion in additional funding over five years for housing and homelessness services. 

The government has also doubled the First Home Owner Grant from $15,000 to $30,000 between 20 November 2023 and 30 June 2025.  

The threshold for the first home concession on transfer duty has also increased. First home buyers will not pay duty on homes less than $700,000 and will receive a partial exemption up to $800,000. 

Power bill relief doubles next financial year. Every household will receive a $1,000 credit applied directly to bills, while small businesses will also have $650 taken off their power bills – costing $2.96 billion. 

This is on top of existing concessions for seniors and the Federal government’s $300 energy rebate. 

Spending on infrastructure increases $18 billion to $107 billion. This includes an additional $26 billion on renewable energy, which the government says is critical to respond to population growth and future needs. 

The population increase in 2023 was 60% more than the amount forecast.  

Some of the projects include, over the next four years, $2.1 billion for direct Sunshine Coast rail; $1.365 billion for homes for Queenslanders; and $1.7 billion for the 2032 Olympics and Paralympics.